January 20, 2020
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Finance

Different Types of Transfer options For Sending Money to India from USA

If you are an Indian working in the USA and regularly send funds to India, you might have wondered what the maximum limit for the USA to India transfers is. Read this post to know the different types of transfer services and also the taxation on transfers.

Most NRIs working in the USA send funds to their families in India regularly. Apart from family, a lot of NRIs also make many different types of investments in India. Such NRIs are often required to send larger amounts either to their bank accounts in India or to their recipients.

If you too want to send a larger amount from the USA to India, you might want to know the maximum transfer limit. Apart from the transfer limit, you should also know the tax implications of larger transfers. Let us first go through the tax implications of the USA to India transfers before knowing the maximum limit for different types of international fund transfer services-

Taxation of the USA to India Transfers

As per the Federal Gift Tax, you are allowed to send up to $14,000 per year to a blood relative in India without paying any taxes on the amount. If you and your spouse live in the USA, both get a $14,000 limit. This means you and your spouse can collectively send up to $28,000 to a blood relative in India in a year without paying any tax on the transfers.

The recipient in India will not be required to pay any taxes on the same. Similarly, if you are sending more than $10,000 to India for business or investment, you are required to inform the same to the IRS in the USA. In India, this money will be taxed as per the applicable tax laws.

Let us now have a look at the maximum per day transfer limits of different fund transfer options-

  1. Wire Transfer

Wire transfer is very commonly used by the NRIs in the USA for sending larger amounts to India. The per-day transfer limit with wire transfer depends on the service provider you select. Some of them have a limit of $10,000, while others do not have any limit at all. However, the local bank in the USA is required to report every transfer of $10,000 and above to the IRS.

  1. Offline Money Transfer Agents

Just like wire transfers, the maximum per day transfer limit varies between the offline money transfer agent you select. Some agents do not have any upper limit. But larger transfers with offline agents generally means paying a high transfer fee.

  1. Bank Online Transfer

Banks that offer international money transfer service online generally have a transfer limit of $10,000 per day for the USA to India transfers. Apart from the daily limits, they also have weekly limits for international transfers. But online transfer service from reputed banks is known to be fast, secure, and cost-effective.

Stay Informed, Stay Safe

Thanks to the availability of all the different types of money transfer services, sending funds to India from the USA is now easier than ever. But if you regularly send larger funds to India, it is essential to know the tax implications and transfer limit of the service you select.

You can visit the official website of the service provider to know more about their transfer limits so that all your transfers to India are quick and hassle-free.

Disclaimer: “The contents of this article is meant merely for informational purpose. Any reliance placed on such information is therefore strictly at one’s own risk.”